Effective crisis management: Tools

and best practice for the new

millennium
Received (in revised form): 17th February, 2003
Caroline Sapriel
is the founder and Managing Director of CS&A, a specialist risk and crisis management consulting rm with oces in Europe,
Asia and the USA. With particular experience in high-risk and controversial industries, CS&A works with the senior
management of multinational corporations in the oil and gas, chemical, nuclear, shipping, airline, tobacco, food, construction
and property sectors to assess risk, develop response structures and systems, plan scenarios, train executives and sta and
stage multi-location simulation exercises. With over 15 years experience in risk and crisis management, corporate
communications and public aairs Caroline Sapriel is recognised as a leader in her profession and acknowledged for her
ability to provide customised, results-driven counsel and training at the highest level.
Abstract This paper outlines the new approach to crisis management, as forming an
integral part of business contingency planning Crisis management is no longer primarily
a function of the corporate communication department. To address eectively the variety
of risks and complex issues that corporations face today, crisis management must be
mandated from the top of the organisation and driven and implemented by all key
business functions jointly. Crisis management needs a corporate custodian that ensures
plans and skills are up to date throughout the organisation. Processes must be
established and tools that facilitate and speed up crisis response are critical.
KEYWORDS: business contingency planning, crisis leadership, risk
INTRODUCTION
Gone are the days when the corporate
spokesperson could work with their
journalist friends and mop up bad news
when things went wrong in the company.
Crisis management is no longer
primarily a corporate communication
function nor is it enough for the
communications department to write the
crisis manual and to arrange media
training for management. The fact is, crisis
management is much more than crisis
communication.
INTEGRATION
A crisis is, by denition, an event,
revelation, allegation or set of
circumstances which threatens the
integrity, reputation, or survival of an
individual or organisation. It challenges the
publics sense of safety, values or
appropriateness. The actual or potential
damage to the organisation is considerable
and the organisation cannot, on its own,
put an immediate end to it.
Statistics show that most business crises
today are non-event-related or
smouldering crises (Figure 1) and that they
originate mostly with management
inaction and/or neglect (Figure 2).
Therefore, there is a growing
recognition among corporations that crisis
management must be institutionalised and
that all key business functions must
address crisis prevention and management
formally as part of business planning. In
todays world, organisations must take a
holistic view and establish solid business
contingency plans (BCP), of which crisis
management is but one element. To be
eective, crisis management must be
Caroline Sapriel
Director, CS&A,
t Vlietje 11
2800 Mechelen,
Belgium.
Tel: + 32 15 330361;
Fax: + 32 15 330359;
E-mail:
caroline.sapriel@csa-crisis.com
# Henry Stewart Publications 1363254X (2003) Vol. 7, 4 000000 Journal of Communication Management 1
embedded into the organisations
corporate management system.
Many organisations have existing crisis
management plans in place and have
matured in their overall crisis response
capability. Therefore, the objective now is
to further enhance this capability and to be
better prepared to respond to new and
unimagined risks as well as to manage the
ever-growing number and diversity of
stakeholders, many of whom have
conicting agendas. This is even more
critical when considering the ever more
complex organisations, with regular
restructuring, mergers and acquisitions and
divestments taking place, that occur in the
business world. This can only be achieved
by working in an integrated way.
Business contingency planning (Figure
3) gained momentum with Y2K. The
tragic events of 11th September, 2001
made it a reality. So how does crisis
management t into BCP?
When the risk management process
addresses issues and is integrated with the
issues management process in the
organisation, the crisis prevention
capability is noticeably enhanced. This is
particularly the case for the smouldering
crises referred to above. Identifying and
evaluating risks and issues is the rst step,
but it is the management of the risks and
issues which is critical and most
challenging for most organisations,
especially when dealing with intangible
issues.
65%
35%
Source: Institute of Crisis Management
Sudden
Smouldering
Figure 1: Crises by type in the 90s
21%
65%
14%
Manag
Emplo
Other
Source: Institute of Crisis Management
Management
Employee
Other
Figure 2: Origin of crises in the 90s
CS&A
Risk identification
Risk evaluation
Severe loss
Minor loss
Retain?
Pre-loss
- Transfer
- Prevention
Loss Post-loss
Business
recovery plan
Business
continuity plan
Crisis
management
plan
Figure 3: Business contingency planning
Sapriel
Journal of Communication Management Vol. 7, 4 000000 # Henry Stewart Publications 1363254X (2003) 2
Not all crises are preventable. However,
having eective risk and issues
management processes in place will help
organisations foresee, plan scenarios, be
more proactive and decide on whether to
take, treat, transfer or terminate the risk.
Actual crisis management planning deals
with the loss, just as disaster recovery and
business continuity planning deal with the
situation after the loss. Crisis management
is about being prepared to handle adversity
and minimise impact most eectively and
facilitating the management process during
chaos.
BEST PRACTICE
This integrated and holistic approach is
being adopted by multinationals across
various industries. A crisis custodian is
appointed with the task to assess, plan and
implement a comprehensive and
professional crisis response system,
bringing together key business functions
including operations, human resources,
legal, IT, health safety & environment,
sales & marketing, communications and
reputation security.
A major oil company in Latin America
last year embarked on a six-month
programme to completely overhaul its
existing crisis management plan. The
process began with an in-depth assessment
of its risk and issues management
processes, emergency and crisis response
plans and procedures, facilities, and
aptitudes and skills.
The ndings generated comprehensive
recommendations to close identied gaps.
An action plan with specic completion
targets was then formulated to revise,
expand and integrate processes, train
management and sta, and test.
Monitoring and evaluation are critical to
the success of the process. In this case, a
number of tasks still need to be completed
before the company receives a clean bill of
health in the area of crisis management
according to recognised criteria. This
CS&A
On-going issues monitoring
Training
Crisis management capability
development
Emergency &
crisis
response
Reputation
management
Testing
Monitoring &
evaluation
Increased
crisis
preparedness
Risk
assessment
Risk
management
Risk identification Risk evaluation
Risk elimination Risk reduction
Crisis
preparedness
assessment
Figure 4: Risk & crisis managemtn planning process
Eective crisis management: Tools and best practice for the new millennium
# Henry Stewart Publications 1363254X (2003) Vol. 7, 4 000000 Journal of Communication Management 3
means that the organisation has the
processes, facilities, resources, competencies
and tools in place to prevent a crisis
wherever possible and to manage one
eectively. Thereafter, maintenance is key
to staying healthy.
To organise the most eective response
structure to a crisis, adopting a tiered
approach is advised. This enables the
organisation to activate its response
mechanism quickly, yet not overreact or
over-deploy.
A leading international nancial
institution reviewed its response structure
following Y2K and implemented a three-
tier system, similar to the model in Figure
5. This approach empowers sta at key
levels to tackle any extraordinary incident
with the potential to escalate and bring it
up to more senior echelons without delays
according to dened criteria. In this case,
the organisation has had the opportunity
to practise the model in real situations
including the euro conversion and support
of companies aected by 9/11. The system
is ideally suited to this institution which
has various critical operations centres
operating across dierent time zones.
This three-tiered approach includes alert
systems, activation procedures, escalating
criteria and sta duty rosters.
EXPANDING AREAS OF CRISIS
RESPONSE
Managing next-of-kin communication
Another area of crisis response which has
been made a necessity by the event of 11th
September is managing the human
dimension of a crisis. Indeed, managing
public, family and employee
communication is an increasingly
important component of overall business
contingency planning.
While the airlines had well-established
procedures to manage next-of-kin and
employee communication on 11th
September, most companies in New
Yorks World Trade Center had little in
place to deal with the extent of the human
tragedy facing them.
The US Federal Emergency
Management Agency and other State and
Federal bodies as well as NGOs like the
American Red Cross activated support
mechanisms, funds, insurance and travel
assistance for families of the victims.
However, on the corporate level, while
the nancial industry had insurance, risk
and IT contingencies, it was not prepared
to deal with the impact of a crisis on
employees, and their next-of-kin.
Louis Cauman, psychologist and
2-way communication
Crisis
Disaster
Emergency
Tier 3
Tier 2
Tier 1
CS&A
Figure 5: Linking emergency response to crisis management
Sapriel
Journal of Communication Management Vol. 7, 4 000000 # Henry Stewart Publications 1363254X (2003) 4
director-owner of the Korzybski
Foundation, an international training
institute in Solution-Focused Brief
Therapy, says:
Facing and supporting grieving individuals
eectively is dicult. It requires awareness,
sensitivity and skills. When a crisis involving
injuries or fatalities occurs, the way a
company manages its communication with
victims and next-of-kin is critical to
minimising potentially devastating and long-
lasting impact on the aected parties. It also
helps to protect corporate reputation.
Whilst the airlines had procedures in
place to manage next-of-kin and employee
communication on 11th September, most
companies in New Yorks World Trade
Center had little in place to deal with the
extent of the human tragedy facing them.
Major world airlines have established
processes and ongoing training
programmes to deal with public, family
and employee assistance in the event of
accidents. When an accident occurs,
airlines immediately activate their
passenger information call centres and
mobilise and despatch teams to provide
support to victims and next-of-kin at the
accident site.
Singapore Airlines, for instance,
established its next-of-kin buddy system
in 1992 and has gradually built it up to a
total of 385 trained company sta.
Buddies are available to support families
in the event of an accident, hijack or even
extended delays due to air trac control
failures as well as on-board food
poisoning. Tragically, the airline had to
activate its next-of-kin support in
November 2001 when one of its planes
crash-landed on take-o at Taipei Chiang
Kai Shek International Airport. That same
evening, 150 buddies were own in from
Singapore to assist families.
Smaller carriers are embracing industry
best-practice as well. Dragonair, Hong
Kongs second airline, last year embarked
on creating a family assistance support
team (FAST). Ronnie Choi, General
Manager of Customer Service at
Dragonair, says:
Like other airlines, we had the systems in
place in the event of an accident, such as call
centres, processes and trained sta. But in a
worst-case scenario, we wanted to be able to
do more for those who would be most
aected, namely the families, so we set up
FAST which includes a train-the-trainer
programme to sustain our in-house
capability on a continuous basis.
Since 11th September, companies in the
oil & gas, nancial and property sectors
have considerably expanded their family
support programmes. Teams of volunteers
are being trained to handle next-of-kin
telephone enquiries eectively in the event
of an emergency or crisis involving
casualties, and a formal telephone response
capability is being routinely tested as part
of crisis simulation exercises. The
management of victims and next-of-kin is
often linked with enhanced security
procedures.
Leadership
In a crisis, leaders serve as a repository for
peoples fears. Leaders can also act as a
mirror reecting a groups anger, grief,
resolve or joy on a much larger stage than
is available to most. Leaders say in eect I
hear you .
On 11th September, New York City
turned to its leader, Mayor Giuliani, for
guidance. Leaders are essential to lead their
organisation through a crisis, and provide
their audience with a vision of the
aftermath of the crisis. They provide focus
and overview, and rally their team under a
mission.
Managing a crisis by consensus does not
work. Short time, threat and the surprise
elements of most crises imply that tough
decisions need to be made and made
quickly. The crisis management team
Eective crisis management: Tools and best practice for the new millennium
# Henry Stewart Publications 1363254X (2003) Vol. 7, 4 000000 Journal of Communication Management 5
(CMT) must command and control and
not get lost in endless debates to make
decisions.
Industries that have the need for
sophisticated emergency and safety
management processes and skills at the
operational level, such as the oil & gas
industry, are raising the requirements for
such skills to the CMT level. Regular crisis
leadership workshops are organised to
train crisis leaders and their CMT to be
better prepared to lead under stress, and
manage the situation proactively and
strategically. During such workshops,
executives are invited to experience the
dierence between consensus-based and
command and control styles of
management by working through
scenarios. To enhance their strategic
planning and proactive crisis management
skills, CMT members are taught to work
with stakeholder and issues/risk-mapping
processes. Crisis leaders must assign
scenario planners on their team whose sole
responsibility it is to generate scenario
permutation based on the events and
potential stakeholder reactions. This
facilitates the decision-making process,
helps prevent knee-jerk reactions and
generally promotes proactive and strategic
management. This reinforces the notion
that CMT should be made according to
suitability and not mere functionality.
Reputation
Managing reputation in a crisis is still one
of the most challenging aspects of eective
crisis management. The multiplicity and
diversity of stakeholders, many of whom
have conicting agendas, can give
management the impression they are
gaining on one hand and losing on the
other. Nevertheless, it is vital not to lose
sight of stakeholder perceptions, and work
with a solid communication strategy based
on corporate values and principles, which
are best captured in a crisis mission
statement. This mission statement, which
the CMT should formulate at the onset of
the crisis, provides the organisation with a
guiding strength, a focus and a vision of
the aftermath of the crisis.
Once this vision is established and the
organisation can rally around it, it acts as
the foundation for any and every message
communicated to stakeholders. However,
communicating with stakeholders is only
half of the equation. Listening to them and
their concerns is essential to ensure that the
organisations internal operational view of
the way the crisis is being managed is as
close as possible to the external perceptual
one of stakeholders (Figure 6).
In a crisis, reputation-management best
practice consists of the elements shown in
Figure 7.
CS&A
The internal operational view of the
event by the company
The external perceptual view of the event by
the public, the media and other audiences
Figure 6: Managing perceptions

Preparedness
A robust yet flexible strategy throughout
Essential among corporate values & principles:

honesty & integrity

transparency
two-way - communication with stakeholders
Sensitivity to local considerations
Ownership & responsibility
Action not just words
A commitment to doing the right thing
CS&A

Figure 7
Sapriel
Journal of Communication Management Vol. 7, 4 000000 # Henry Stewart Publications 1363254X (2003) 6
THE TOOLS
So, what specic tools can be utilised
within the crisis planning process described
above?
Assessments
Conducting a comprehensive assessment is
the starting point to identify gaps and
design an action plan.
Training
Once processes have been developed
covering all key business functions,
competency needs to be tackled. This is
best done in three stages:
(1) aptitude testing;
(2) training; and
(3) practice.
Skills and experience at all levels of the
crisis response structure are critical, from
the switchboard response to callers, to the
leadership and strategic planning skills of
the CMT, to the ability to provide support
to next of kin and victims and, of course,
to communicating with the media
eectively and protecting reputation.
Contrary to belief, the best CMTs are
made according to suitability and not
functionality.
Certication
With regular sta movement and job
changes, downsizing and reorganisations, it
is essential to have a solid plan in place, so
that training and retraining can take place
systematically. Corporations are now
introducing crisis management
competency certication for management
and sta according to recognised criteria,
to ensure that the right skills are in the
right place at all times.
Practice and testing
Practice makes perfect. Organising regular
exercises such as desktop and simulation
drills is the only way to discover gaps and
address them.
As Winston Churchill famously stated,
plans are useless, but planning is useful.
Surprisingly, a vast number of crisis plans
have never been tested and are sitting on
oce shelves gathering dust.
Facilities and equipment
On 11th September, business and
corporations including those with
headquarters in the vicinity of the World
Trade Center were unable to communicate
with anyone for several hours after the
attack.
Companies must consider the tools best
suited to manage a crisis under dierent
scenarios and contexts. This includes
facilities and communication equipment
and back-ups.
CONCLUSION
When considering eective crisis
management today, it is a far more
complex undertaking than putting your
spokesperson in the front line to fend o
the media. Organisations that are serious
about being better prepared have made the
decision to embed the function into the
corporate management system and ensure
they have:
. ongoing risk and issues assessment
. sound and tested processes
. training and practice
. a strategic approach
Over and beyond this, however, nothing
can replace an organisations commitment
to doing the right thing, having strong
leadership, and communicating and
managing stakeholder perceptions
eectively. So, crisis communication has
not lost any ground. Thankfully, it is no
longer standing alone to face up to the
mess. In fact, more than ever, good or bad
communication can still make or break a
crisis.
Eective crisis management: Tools and best practice for the new millennium
# Henry Stewart Publications 1363254X (2003) Vol. 7, 4 000000 Journal of Communication Management 7
References
1. International Association of Business Communicators.
2. Institute of Crisis Management.
3. Details to be supplied.
4. Details to come.
5. Fortune Magazine (2001) 12th November.
Sapriel
Journal of Communication Management Vol. 7, 4 000000 # Henry Stewart Publications 1363254X (2003) 8